Consumer sector sees 4-year high in deals, ₹21,000 cr raised YTD, F&B leads

With regard to the quantum of fund raising in CY25 (YTD), the consumer segment witnessed deals worth more than Rs 21,200 crores, with 74% of the deals in Food & Beverage segment.

India’s consumer sector is riding a wave of strong festive demand, cooling inflation, and heightened deal activity, hitting a four-year high in M&A transactions this year.

 

According to a report by Equirus Capital, the sector recorded 115 deals between January and September 2025, the highest since 2021 and up from 100 deals in 2022. The Food & Beverage (F&B) segment led the charge with 41% of total deals, followed by Apparel & Accessories at 24%. 

As many as 237 PE deals were closed January-September (CY2025 YTD), in the last month, there were 7 VC deals and 15 PE deals.

 

Rs 21,200 Crore Raised YTD; F&B Leads

 

The consumer sector raised over ₹21,200 crore in CY2025 (YTD), with nearly three-fourths (74%) of all deal value concentrated in the F&B segment.

 

In September alone, 10 M&A deals were reported, with the Trident Group’s ₹2,486 million acquisition emerging as the largest. Other notable transactions included Marico’s 46% stake buy in HW Wellness Solutions (₹1,385 million).

 

PE Activity Surges; 99% of September’s Deal Value

 

Between January and September 2025, the consumer space also saw 237 private equity (PE) transactions.

 

In September, there were 15 PE deals and 7 VC deals, accounting for a combined ₹25,000 crore in value — with 49% concentrated in the F&B sector. The average deal size stood at ₹1,070 million, led by the KPN Fresh Farm transaction, which alone contributed 31% of total PE deal value for the month.

 

Festive Tailwinds, Inflation at 3.2% Boost Consumer Sentiment

 

Complementing the investment momentum, FMCG and retail companies reported 6–8% month-on-month volume growth in September, according to the LSEG Consumer Sector Tracker.

 

The RBI’s Consumer Confidence Index rose to its highest level since 2021, while headline CPI inflation eased to 3.2%, the lowest in two years — providing consumers with more purchasing power ahead of the festive season.

 

Outlook: Strong Quarter Ahead, Margin Watch Continues

 

Industry analysts expect consumption momentum to sustain through Q4, aided by festive spending and benign price trends. However, they caution that competitive pricing and rising marketing spends may weigh on margins.

 

“A mix of cooling inflation, stronger sentiment, and active deal flow underscores the resilience of India’s consumption story,” Equirus Capital said in its note.

 

Quick Data Recap

 

Total Deals (Jan–Sept 2025): 115 (4-year high)

 

Total Value (CY2025 YTD): ₹21,200 crore

 

Top Sectors: Food & Beverage (41%), Apparel & Accessories (24%)

 

PE Deals (Jan–Sept): 237; Value: ₹25,000 crore

 

Avg Deal Size (Sept): ₹1,070 million

 

Inflation: 3.2% (lowest in 2 years)

 

FMCG Volume Growth: 6–8% MoM 

In terms of value, the PE deals were worth more than Rs 25,000 crore, with F&B segment accounted for 49% of the deals.